With full-employment and efficient utilization of all its


With full-employment and efficient utilization of all its resources Dismaland can produce 300 tanks. Alternatively, Dismaland could devote all its resources to automobiles and produce 650 per year - or it could produce any combination of tanks and automobiles lying on a straight line between these two extremes. Draw a PPF for Dismaland (with tanks on the horizontal axis).

What is the opportunity cost of producing an additional automobile in Dismaland? Give a numerical answer.

Does the principle of "increasing opportunity cost" hold in this country?

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Business Economics: With full-employment and efficient utilization of all its
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